CHANGING JOBS

What to do with an old 401(k)

4 options, 1 tax trap

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Option 1

LEAVE IT

In the old plan

Fine if fees are low.

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Option 2

NEW 401(K)

Roll it over

Keeps money in one place.

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Option 3

IRA

Roll it over

More fund choices.

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Option 4

CASH OUT

Costly

Tax plus 10% if under 59½.

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Best move

DIRECT

Rollover

No taxes withheld.

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Indirect

20%

Withheld

You have 60 days to redeposit.

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Age 55+

RULE OF 55

No 10% penalty

Only from that employer plan.

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Small balance

$7,000

Can be moved

Plans may move it to an IRA.

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Move it the right way

Step-by-step guide

Read the guide

nexgenheadlines.com

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